No-deal Brexit impacts consumer spending and online sales
- Retail spending slumped in September due to Brexit concerns
- Sales decreased by 1.3% in total and 1.7% on a like-for-like basis compared to last year
- Worst September since records began in 1995
- Online sales of non-food products grew at the lowest rate ever, 0.7%, down from 5.4% in 2018
- BRC CEO Helen Dickinson: ‘consumers held off on non-essential purchases’
- Longer-term outlook remains bleak with 12-month average at 0.2% growth
Brexit concerns have led to a significant decrease in retail spending in September, with total sales dropping by 1.3% compared to the same period last year. This marks the worst September since records began in 1995 and is below the three-month average decline of 0.4%. Like-for-like sales also fell by 1.7%, worse than the three-month and 12-month averages of -0.8% and -0.4% respectively. Online non-food product sales grew at a record low rate of 0.7%, down from 5.4% in September 2018, with three-month and 12-month average growths at 2.1% and 3.8%. British Retail Consortium (BRC) CEO Helen Dickinson explained that consumers delayed non-essential purchases and sought bigger discounts due to the uncertainty of a no-deal Brexit, while new autumn clothing ranges were affected by warmer weather. The long-term outlook remains bleak with a 12-month average growth at just 0.2%.
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about the decrease in consumer spending due to Brexit concerns, citing relevant statistics from the BRC. It also includes quotes from the CEO of the organization to provide context and analysis.
Noise Level: 3
Noise Justification: The article provides relevant information about the impact of Brexit concerns on consumer spending and retail sales, with data and comparisons to previous years. It also includes quotes from a relevant source (BRC CEO) that support the claims made in the article.
Financial Relevance: Yes
Financial Markets Impacted: Consumer spending and retail sales
Financial Rating Justification: The article discusses a decrease in consumer spending due to concerns over a no-deal Brexit, which impacts the retail sector and can affect companies’ financial performance. It also mentions online sales growth, which can impact e-commerce businesses.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the text.
www.retailsector.co.uk